Feds: Seattle investigation cracked Iranian nuclear network

Two men alleged to have conspired to trick U.S. companies into selling nuclear-related materials to Iran have been indicted following an investigation launched in Seattle.

Federal prosecutors based in Washington, D.C., contend Iranian national Parviz Khaki, 43, and Chinese national Zongcheng Yi attempted to obtain and illegally export U.S.-origin materials to Iran that can be used to enrich uranium.

According to a Homeland Security Department press release, Yi and Khaki created a network of shell companies to deceive U.S. companies into supplying nuclear-related materials to Iran.

Homeland Security Investigations agents launched an investigation in 2008. Investigators now contend Yi and others bought equipment from U.S. companies, shipped them to China and then sent them to Khaki and others in Iran. According to the press release, the materials can be used to operate gas centrifuges used to enrich uranium

Khaki is also alleged to have worked to procure radioactive source materials from the United States for customers in Iran.

“By dismantling this complex conspiracy to deliver nuclear-related materials from the United States to Iran, we have disrupted a significant threat to national security,” ICE Director John Morton said in a statement. “Homeland Security Investigations will continue to pursue those who exploit U.S. businesses to illegally supply foreign governments with sensitive materials and technology that pose a serious risk to America and its allies.”

Both defendants are charged with conspiracy to violate a federal law restricting the export of U.S.-goods to Iran, as well as conspiring to defraud the United States, smuggling and conspiring to launder money.

Khaki, also known as “Martin,” was arrested on May 24 by Philippine authorities. Khaki remains in Philippine custody and the United States intends to seek his extradition to stand trial in the District of Columbia.

Yi who also goes by “Yi Cheng,” “Kohler,” and “Kohler Yi,” is purported to be the managing director of Monalila Co. LTD, a company in Guangzhou, China. He remains at large.

Homeland Security Investigations agents in Seattle led the investigation, with assistance from HSI employees in Manila.